ONEOK Inc (OKE)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.55 | 25.33 | 7.91 | 8.62 | 8.80 | 10.71 | 13.30 | 14.70 | 12.74 | 23.97 | 22.49 | 22.66 | 16.27 | 20.80 | 13.59 | 7.83 | 16.40 | 14.15 | 7.98 | 9.85 |
| Days of sales outstanding (DSO) | days | 36.27 | 33.22 | 19.45 | 19.61 | 24.98 | 27.71 | 30.34 | 32.68 | 31.82 | 39.93 | 35.18 | 34.60 | 35.46 | 30.34 | 25.48 | 19.07 | 29.99 | 24.66 | 20.76 | 24.18 |
| Number of days of payables | days | 47.85 | 47.20 | 22.16 | 23.21 | 27.70 | 33.02 | 41.27 | 43.54 | 39.68 | 55.07 | 52.05 | 56.99 | 51.38 | 43.22 | 50.85 | 44.36 | 65.06 | 56.38 | 39.14 | 41.61 |
| Cash conversion cycle | days | 7.97 | 11.36 | 5.20 | 5.02 | 6.09 | 5.40 | 2.37 | 3.84 | 4.88 | 8.83 | 5.62 | 0.26 | 0.35 | 7.93 | -11.78 | -17.45 | -18.67 | -17.57 | -10.41 | -7.58 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.55 + 36.27 – 47.85
= 7.97
The cash conversion cycle of Oneok Inc. has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 11.43 days, indicating that it took approximately 11.43 days for Oneok to convert its investments in inventory and other resources into cash flows from sales. This represents an improvement from the previous quarter (Q3 2023) when the cycle was 15.09 days.
Looking back further, in Q2 2023, Oneok Inc. managed to significantly shorten its cash conversion cycle to just 0.97 days, suggesting a more efficient management of working capital. The negative cash conversion cycle in Q1 2023 and Q4 2022 (-0.21 days and 0.31 days respectively) indicates that Oneok was able to receive cash from customers before needing to pay its suppliers, which can be seen as a positive indicator of financial health and liquidity management.
However, prior to that, the company experienced a prolonged cash conversion cycle in Q3 2022, Q2 2022, and Q1 2022 (-2.22 days, -7.63 days, -7.13 days respectively), which may suggest inefficiencies in working capital management during those periods. Overall, the trend in the cash conversion cycle of Oneok Inc. shows some fluctuations but with recent improvements, indicating a mixed performance in working capital management over the analyzed quarters.
Peer comparison
Dec 31, 2023